Jefferies Ups State Street Price Target

Jefferies & Co. maintained a "hold" rating on State Street STT, but lifted its price target on the custodian bank to $42 to $40 after the company pre-announced bullish second-quarter results. Jefferies also upped its 2Q estimate on State Street to 93 cents a share from 64 cents a share. Expenses declined significantly compared to our estimate, reflecting management's continued focus on cost efficiency, according to the research note. We estimate that total expenses in the period equaled about $1.5B, down slightly q/q from $1.57B, Jefferies said.